Frankfurt, Oct. 4 (BNA): Oil prices jumped on Monday after OPEC and allied oil-producing countries kept their gradual approach to restoring sagging production during the pandemic, and agreed to add only 400,000 barrels per day in November.
And it tracks the decision of the Vienna-based oil organization, on Monday, with its schedule to return that amount of oil each month until the significant cuts made in 2020 to support prices during the pandemic recession next year are restored.
The situation has since changed with the recovery of the global economy. The decision comes amid stronger demand for petroleum products such as gasoline and jet fuel, as driving and aviation rebound around the world due to the easing of restrictions aimed at containing the COVID-19 pandemic.
Moreover, unusually high prices for natural gas are prompting some electricity producers in Asia to switch from natural gas to oil-based products, helping to support prices, the Associated Press reports.
The price of a barrel of crude oil jumped 3%, or $2.32, to $78.17 on the New York Mercantile Exchange, the highest since 2014. The international benchmark Brent crude hit a 3-year high of $81.48, up 2.8% on the day.
Average US gasoline prices have held steady at around $3.20 a gallon in recent days, according to the AAA Automobile Club, which forecast short-term gas price stability with supply and demand “largely in sync.” The average was 97 cents more than a year ago.